Cofely District Energy

Presentation to CHP Conference

Ian Forsyth – Business Development Manager

16th January 2014

BDEC, COFELY DISTRICT ENERGY & GDF SUEZ

Combined Heat & Power (CHP) and District Energy

Birmingham District Energy Company (BDEC)

– Background

– Partnership

– Technical

– Benefits

Other Case Studies

– Southampton

– Olympics

– Leicester

– Coventry

Summary

Introduction

No. 1 - World’s largest multi-utility (Forbes Top 2000)

€97 billion turnover

€11 billion gross investment (2012);

217,550 employees throughout the world

60,700 in electricity and gas

77,350 in energy services

79,500 in environmental services

118 GW of installed capacity (12 GW under construction);

1,100 researchers and experts in 9 R&D centers

Operational presence in almost 70 countries

6 business lines

European DE Schemes

Cofely District Energy

Services

To Energy Companies

Services to

External

Clients

Energy Companies

SGHC

Cofely Ltd

GDF SUEZ

GDF SUEZ Energy Services LTD

Cofely District Energy Group Ltd

ICE (UK)

Cofely District Energy Ltd

BDEC

BHP

CELE

LDEC

CDEC

COFELY District Energy

£2.5bn revenue stream over the concessions

77,000 tonnes CO2 saved per annum

270 GWh energy sales per annum

MediaCity UK

Leicester District Energy Birmingham District Energy Coventry District Energy

Olympic Park & Stratford City Whitehall Bloomsbury Heat & Power Greenwich Millenium Village Equinox, Hatfield ExCel Arena

Southampton Geothermal Eastleigh

London

Manchester

Midlands

South Coast

District Energy

• Piped heating & cooling services to buildings – “Energy Linking”

• Pre-insulated pipe, buried circa 1-1.5m below ground in the highway

• Pipe can be plastic (HDPE) or Steel and is typically between 100mm and

500mm (OD) • Heat losses generally < 0.5°C per km

• Reliability ~ 100% (e.g. 99.98% for Southampton over 25 years) • Networks last for > 50 years • Energy density is key, i.e. Size of heat load and distance from network

Typical pipe work Installation

Suitable Technologies for heat networks? Many and Varied !

• The energy network is the priority

– but consider the generation technology too

• Networks are technology agnostic

– they don’t mind where the heat comes from

• The key principles must be lower carbon and lower cost

• Generation technologies can include:

Biomass – e.g. wood chip and pellets

Deep Geothermal

Industrial Heat Sources

Energy from Waste

Gas Fired CHP

Bio CHP

Pyrolysis

... Etc ....

CHP Combined Heat and Power (CHP)

CHP produces heat in the form of recovered hot water/steam and electricity

Higher efficiency (80-85% compared with traditional thermal power station 25-35% and gas boilers)

Gas turbines, steam turbine or reciprocating engines

Fuel ‘agnostic’ – biogas, vegetable oil, biomass etc

Birmingham District Energy

Company, Birmingham

City Wide DE Scheme

12,000 tonnes CO2 saved p.a.

3 Core Partners

Providing heat chilled water &

electricity from

4 Energy Centres

7.5MWe CHP

District energy is part of BCC’s long held a vision to develop large scale sustainable energy infrastructure across the city and reduce its CO2 emissions by 60% by 2025.

Following various feasibility studies and development of the business case between 2004-06, BCC, Aston University & Birmingham Children’s hospital commenced a single OJEU procurement process for a long term energy services contract to develop, operate and supply energy via a district energy scheme for the City for 25 years.

CDE were successful in winning this bid and incorporated a new ESCo, the Birmingham District Energy Company (BDEC) as the wholly owned company to deliver the schemes.

Agreements with the core partners were signed between 2006-09

The Background

The Commercial Framework

25 year agreements with BCC, Aston and BCH

100% risk transfer to BDEC i.e. responsibility for existing assets, efficiency etc all rests with BDEC plus new investments in CHP and other plant

Financial savings (on a whole life cost basis) maintained throughout the contract by indexing charges to national fuel prices, RPI etc

Scheme supplies heat, chilled water and electricity to agreed output specifications with penalties for non performance

Savings to consumers >£0.5M p.a.

Emission reductions of 14,000 tCO2 p.a. with target for 20,000 tCO2 through growth and low carbon supply

Extensions to Third Parties increase the benefits to all – better CO2 savings

Benefits to Third Party Consumers

• Capital cost savings

• connection charge up to 20% less than conventional plant

• Operating cost savings

• up to 10% saving compared to alternative cost of heating/cooling

• Guaranteed Savings

• prices index linked to market prices to ensure savings are maintained

• Carbon Savings

• Building Regs, BREEAM, CfSH, CSR targets

• Risk Transfer

• no mechanical plant, flues, gas etc on site

• Space savings

• very little plant space required compared with boiler house and more flexible in terms of location

BDEC

• Large commercially developed CHP/district energy scheme

• Commenced 2006 • 3 Initial Schemes: City Centre, Aston

University & Birmingham Children's Hospital • £7.0 M p.a. Energy Sales • £0.5 M p.a. cost savings to consumers • 14,000 tonnes of CO2 saved p.a. • 7.5 MWe of CHP (incl. LoB) • Supplying heating, cooling and electricity • Project built on 25 year energy supply

contracts • Capital cost to date £7M

Broad Street Scheme

Core Scheme

NIA

Hyatt

ICC

The REP

Paradise

Circus

Town

Hall

Council

House

Energy Centre

New

Library

Cambridge &

Crescent

Towers

Broad Street Scheme - Installation

1.6MW CHP

NIA ICC Town Hall REP Theatre Paradise Circus Regency HAYTT Council Offices

Victoria Square

Paradise Circus

Boiler house

0.6MW CHP

(Power to NIA)

Chilled Water

(2 x 1.4MW &

1.X 1.9MW Chillers)

Key : Chilled water

Electricity

MTHW

LoB

(0.8MW CHP)

(3x1.2MW

+ 0.4MW Chillers)

ICC Energy Centre

Council Offices

Victoria Square

Broad Street Energy Centre

Chillers for Cooling CHP (1.6 MWe gas fired) Gas Boiler (top up back up)

Exhaust Gas Heat Exchanger Silencer

Birmingham - Eastside Schemes

1. Phase I – Aston University

CHP – 1 x 2.0MW & 1 x 1.0MW in existing boiler house

2 x 3.5 MW + 1 x 7.3 MW back-up/top-up gas boilers

Energy Sales - £2M

Carbon Savings - 5,300 Tons of CO2

2. Phase II – Birmingham Children’s Hospital and BCC Lancaster Circus

CHP – 1.6 MW in new energy centre

2 x 4.5 MW back-up/top-up gas boilers

Application made for £1M NHS Capital Grant

Energy Sales - £1.04M

Carbon Savings - 3,500 Tons of CO2

Lancaster Circus

Birmingham Children’s

Hospital

Aston University

Woodcock

Street

Energy

Centre

Bagot Street

Energy Centre

To City Centre/Broad

Street Scheme

To City Centre North

inter-connection

Masshouse Block M

New site for Birmingham Magistrates Court

Masshouse Site 7 (TBC)

AWAITING IMAGE

Eastside Scheme

Energy Efficiency in Action

– Energy Efficiency in Action

• Energy Efficiency in Action

Combined Schemes

Broad Street Scheme

Eastside

Regeneration Area

Potential future energy links

Broad Street Scheme

Eastside Scheme

Phases 1 and 2

Eastside

Regeneration Area

Westside Regeneration

Area

Broad Street & Aston Interconnection

•Increased resilience

•Increased Carbon Savings

•Further Opportunities for connection

Scheme Expansion (City Core) – New Street Station & John Lewis

– Victoria Law Courts Cluster, Police HQ, Snow Hill

– Aston University (incl Gosta Green)

– Paradise Circus

– Brindley Place

– Arena Central

– Colmore Row Area

– NIA Atrium

– Southside

Scheme Expansion (new clusters) – Sellyoak (i.e. Battery Park)

– Birmingham Airport/UK Central

Further Carbon Reduction & Increasing Renewable Content – Anaerobic Digestion (AD) plant

– EBRI Pyrolysis plant (Aston Campus)

Future Plans

Southampton Geothermal Heating

Company, Southampton

City Wide DE Scheme

70,000,000 kWh energy

generated p.a.

11,000 tonnes CO2 saved p.a.

Providing heat chilled water &

electricity to

45+commercial consumers

800+ residential consumers

Energy Efficiency in Action

– Energy Efficiency in Action

• Energy Efficiency in Action

BBC TV Studio’s

Parkview RSH

Hospital

Civic Centre

Southampton Solent University

Skandia Life

DeVere

Hotel

Quays

West Quay The Heat Station

IKEA

Carnival

ABP

Olympic Delivery Authority

Energy Centres for London 2012

£100 million investment

40 year concession

Energy price regulation

16 km of energy network

2 energy centres

(district heating & cooling)

Kings Yard Energy Centre

Biomass Boilers Chillers

Gas Fired CHP

Gas Boilers

Leicester District Energy Scheme - Leicester

CHP and large scale district

networks -

3,000 Council Dwellings

15 Administration Buildings

City Wide DE Scheme

25 year contract with

Leicester City Council

£15 million investment

City wide District Energy Scheme

£15M CDE investment & adoption of existing assets

4.8MW CHP – two energy centres

150kW Biomass boiler

Core customers; City Council & University

4 Core schemes including City Centre

~2,900 homes & 32 administrative buildings

Plans to connect prison, hospital and many other public and private buildings

25 Year Energy Supply Agreement + 5 year extension

Leicester District Energy Scheme

Coventry District Energy Scheme

– Highlighted buildings represents the core scheme (excl. University)

– There are opportunities to

grow the scheme substantially beyond this core group

31

Coventry City Council

Energy from Waste plant

University of Coventry

Coventry Cathedral

Distance

~ 1.5 km

Implementation required drive and ambition within LA

Future expansion requires coherent planning policy and good co-ordination with planning team

The key issue in terms of connection viability is usually the connection distance (capital investment) vs. energy density (revenue)

Currently, gas fired CHP is the most cost effective way of delivering heat to a district energy scheme

However, once the network is installed the heating and cooling technology can evolve as technology matures

Anticipated that LA’s will increasingly require:-

– Reduced carbon content

– Increased % of renewable content

Summary

Thank you

Ian Forsyth - Business Development Manager